I 

112TH CONGRESS 

1ST SESSION H. R. 1313 

To amend the Internal Revenue Code of 1986 to encourage investment in 

certain industries by providing an exclusion from tax on certain gains. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2011 

Mr. POLIS (for himself and Mr. COFFMAN of Colorado) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

investment in certain industries by providing an exclusion 

from tax on certain gains. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Bank and 

5 Automotive Industry Recapitalization Act of 2011’’. 

6 SEC. 2. EXCLUSION OF CAPITAL GAINS ON INVESTMENTS 

7 IN CERTAIN INDUSTRIES. 

8 (a) IN GENERAL.—Part III of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 is amended 

10 by inserting after section 139D the following new section: 


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1 ‘‘SEC. 139E. CAPITAL GAINS ON INVESTMENTS IN CERTAIN 

2 INDUSTRIES. 

3 ‘‘(a) IN GENERAL.—Gross income shall not include 

4 gain from the sale of qualified investment property if— 

5 ‘‘(1) such property is acquired during the 18- 

6 month period beginning on the date of the enact7 ment of this section, and 

8 ‘‘(2) such property is held for more than 5 

9 years. 

10 ‘‘(b) QUALIFIED INVESTMENT PROPERTY.—For pur11 poses of this section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified invest13 ment property’ means any— 

14 ‘‘(A) stock in a specified domestic corpora15 tion acquired by the taxpayer at its original 

16 issue, and 

17 ‘‘(B) any capital or profits interest in a 

18 specified domestic partnership acquired by the 

19 taxpayer from the partnership. 

20 ‘‘(2) SPECIFIED CORPORATIONS AND PARTNER21 SHIPS.— 

22 ‘‘(A) IN GENERAL.—A corporation or part23 nership shall be treated as specified for pur24 poses of paragraph (1) if such corporation or 

25 partnership is a community bank or an auto26 motive company. 


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1 ‘‘(B) COMMUNITY BANK.—The term ‘com2 munity bank’ means any community bank with 

3 less than $10,000,000,000 in assets which is 

4 established and regulated under the laws of the 

5 United States or any State, territory, or posses6 sion of the United States, the District of Co7 lumbia, Commonwealth of Puerto Rico, Com8 monwealth of Northern Mariana Islands, Guam, 

9 American Samoa, or the United States Virgin 

10 Islands, and having significant operations in the 

11 United States, but excluding any central bank 

12 of, or institution owned by, a foreign govern13 ment. 

14 ‘‘(C) AUTOMOTIVE COMPANY.—The term 

15 ‘automotive company’ means any person the 

16 majority of the gross receipts of which are de17 rived from the research, design, production, or 

18 sale of personal or mass transportation vehicles 

19 or components for such vehicles.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for part III of subchapter B of chapter 1 of such Code 

22 is amended by inserting after the item relating to section 

23 139D the following new item: 

‘‘Sec. 139E. Capital gains on investments in certain industries.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property acquired after the date 

3 of the enactment of this Act. 

Æ 


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